Spot power markets trade surges; price up 57 per cent over Mar’17

New Delhi: Power prices in spot market rose 57 per cent last month on higher demand due to early onset of summers and lesser coal supply to thermal power stations, India Energy Exchange (IEX) said.

In March 2018, the day-ahead market at India Energy Exchange (IEX) witnessed a trade of 3,955 million units (MU), an increase of about 19% from 3,326 MU traded in February 2018 and about 18 per cent increase over 3,364 MU traded in March 2017.

On a daily average basis about 128 MU were traded while the average daily sell and buy bids were 174 MU and 172 MU respectively.

The average Market Clearing Price (discovered in the day-ahead market at Rs 4.02 per unit was 24 per cent more over 3.23 per unit price in February’18 and 57 per cent above Rs. 2.56 per unit same month last year.

The increase in spot market price was largely on account of aspects such as increase in demand associated with seasonal variation and inadequate availability of coal with the thermal generators, the IEX statement said.

More recently the day-ahead market has also been attracting the renewable energy generators and specifically the solar energy generators. In March 2018, six solar generators with size varying from 3-100 Mw sold 25.4 MUs in the day-ahead market on the exchange.